IBERSOL Annual Report and Consolidated Accounts 2017

The year of 2017 MAIN EVENTS The year of 2017 was marked by renewed growth, due to an increase in tran- sactions motivated by improvement in market conditions and the effects of refurbishments and openings, as well as the impact of the acquisition of the Eat Out Group, against a backdrop of continued efforts to empower our human resources. The programme of refurbishment, openings and assessment of units continued With an increasing number of customers, we continued to adjust the portfolio of restaurant units, especially in Spain, based on the principle of profitability assessment and tactical interest and lease expiration dates. To this end, 46 unitswere closed during 2017, 21 of which are owned. The closures of owned unitswere due to the end of the concession period of 10concessioned units in Spain (six of which in Fuerteventura airport), the elimination of six points of sale during the remodelling of Lusoponte and five following a decision not to renew the respective contracts (Pans Plaza Norte e Passeio da Graça, PH Carnaxide, Òkilo and Pasta Caffé Vila Real). Continuing the process of assessment of the network of franchised units, 11 units of the Santamaria concept, oneRibs and 11 Pans in Spainwere also closed. Aditionally, the franchise contracts for two FrescCo unites in India were not extended. Conversely andwith regard to the expansion plan that we implemented during the year, 25 new units, 19 owned and 6 franchised, were opened. We also focused on those refurbishments that enhance differentiation, namely at Pans & Company, KFC, Burger King and Pizza Hut. 20